The artificial intelligence (AI) industry is as hot as it’s ever been, and companies that directly contribute to the industry have seen their stocks rise. Nvidia is the far-and-away leader in AI, with its chip technology crucial to the entire industry. Hence, its shares are some of the most valuable on the market. However, there is plenty of competition in the AI stock market, with rival companies hoping to close that gap in the coming years.
Nvidia is a magnificent-seven stock member for a reason. Its shares have rocketed over 1,400% in the last five years. Meanwhile, its rivals still lag behind. Investors believe the AI stock industry will continue to grow in the next few years, and the gap to Nvidia will also close a bit. Thus, which AI stocks could rival Nvidia for the top of the mountain eventually?
DigitalOcean (DOCN)
DigitalOcean (DOCN) stock isn’t talked about as much as other Nvidia rivals, but it still has strong potential. Digital Ocean provides on-demand cloud computing infrastructure to small businesses, developers, and start-ups, and it has recently started offering AI solutions as well. In October, the company released Droplets, an AI infrastructure platform through which customers can rent its cloud platform to train and deploy large language models.
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Demand for DigitalOcean’s products was very high on launch, prompting investors to swoop in and send its stock upwards. As a result, DigitalOcean is now investing more money to bolster its AI infrastructure. With past patterns painting a bullish picture, DOCN shares could be very valuable in the next few years, potentially rivaling Nvidia in the AI industry.
Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) recently finalized its massive $4.9 billion acquisition of ZT Systems. The move shows AMD’s determination to expand its AI chip capabilities amid the ever-increasing demand for AI computing power.
AMD has climbed in the last five years, but nowhere near as much as Nvidia. Although it’s up since 2020, AMD has had a rough last year. Many investors see potential in the company to have a resurgence, especially as AI becomes more important. AMD stock has bullish price projections in the next 12 months. Analysts at CNN, in particular, envision a 107.38% climb in one year to $200, with an ultimate low of $90. With shares currently trading near this low, there is great ROI potential for AMD stock investors who are looking for a cheaper alternative to NVDA.
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Intel (INTC)
Lastly, Intel (INTC) has made several bold moves in the last year to help its company rebound. Like AMD, Intel has had a sluggish few years, but has changed things around. With a new CEO and recent layoffs, Intel is going in a new direction. Thus, INTC stock could have the potential to bounce back from its recent struggles.
INTC is nearly even to its starting share value entering 2025. Additionally, CNN says this price is near the bottom of its 200-day moving average, signaling strong potential for investors who buy the dip. Analysts see a 400% surge potential for INTC stock, suggesting holding onto shares.
